JD Sports Downtrend Continues as Profit Forecast Lowered

JD Sports Fashion (LON: JD.) revised its profit forecast downward on Tuesday, citing higher-than-anticipated market headwinds during the holiday trading period. 

The sportswear giant revealed in its latest trading update that it now expects full-year profit before tax and adjusting items to be between £915 million and £935 million, down from its previous estimate of £955 million to £1.035 billion.

Despite organic revenue growth of 3.4% for the nine weeks to 4 January 2025, the company noted a challenging retail environment, with increased promotional activity impacting overall performance.

Like-for-like (LFL) revenue across November and December were down 1.5%, although JD said a strong Christmas trading period saw December LFL revenue increase by 1.5%.

CEO Régis Schultz commented, “While I am pleased overall with our performance, market headwinds were higher than we anticipated and therefore our full-year profit forecast is slightly below our previous guidance. With these trading conditions expected to continue, we are taking a cautious view of the new financial year.”

The company said footwear sales outperformed apparel, and the company's stores saw stronger performance compared to its online channel. 

The Sporting Goods and Outdoor segment, along with markets in Europe and Asia Pacific, showed positive LFL revenue growth, partially offsetting weaker performance in the UK and North America.

JD Sports shares have been under pressure recently, declining more than 35% over the past three months. So far on Tuesday, the stock is down 10%, continuing the recent move lower in the stock. Over the past 12 months, JD shares have dropped 24%, reflecting ongoing challenges in the retail sector.